Communications Scorecard
AT&T;’s successful $57.2-billion bid for cable operator MediaOne Group would result in winners and losers in the race to provide high-speed Internet access and bundled services to consumers. The deal requires the approval of shareholders and regulators.
Winners
* AT&T;: The nation’s largest phone company would become its largest cable operator, with direct and indirect ownership of systems accessible to 62% of American homes. Through deals with cable operators, AT&T; would be able to use cable lines to provide local phone service to more than 60 million homes.
* MediaOne: Gets a richer deal in accepting the AT&T; bid over an offer by Comcast.
* Microsoft: The nation’s largest software maker would play a larger role in supplying software for advanced set-top TV boxes that AT&T; is rolling out later this year.
Losers
* America Online: The deal is a bad one for the nation’s largest Internet service provider because it could shut AOL out of cable systems controlled by AT&T.; AOL is being left behind in the move to provide high-speed Internet access to consumers; it has appealed to lawmakers for access to cable lines.
* Sun Microsystems: The company’s push for its Java platform to be adopted as a leading operating system on advanced digital set-top boxes in the U.S. could be in jeopardy if Microsoft gets commitments from major cable operators as the OS of choice.
Tossups
* Comcast: While it loses out in its bid to buy MediaOne, the company still brings in a $1.5-billion breakup payment from MediaOne and the potential to buy from AT&T; $9 billion in cable systems that serve 2 million customers. In addition, AT&T; would buy the 50% of Lenfest Communications it does not own and give Comcast the option to purchase some of its 1.2 million subscriptions.
* MCI WorldCom: The No. 2 long-distance carrier has not set out a detailed strategy for offering high-speed Internet service to consumers.
You’ve Got to Hand It to ‘Em
* AT&T; Chairman C. Michael Armstrong, left, has orchestrated a deal melding two of the nation’s leading cable companies.
* Microsoft Chairman Bill Gates, above, would see his company’s role in supplying software to AT&T; get bigger.
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